Frankfurt-based Eurex has cleared its first OTC derivatives trade for end clients domiciled in the US, as it continues to build out its North American franchise.
Citi was the first US bank to offer client swap clearing through Eurex, and eight funds have joined Citi to use the service.
“Providing this solution responds to our clients’ desire to access new liquidity venues for euro interest rates. Citi is proud to offer our clients agnostic clearing connectivity to support their evolving business needs,” said Mariam Rafi, North American head of OTC clearing, Citi.
The competition of the trade follows the recent endorsement by the US derivatives regulator authorising Eurex as an approved clearing house. Eurex has since launched a refined legal framework that complies with US regulations for the clearing of buy-side swap trades.
“Legal recognition was a prerequisite for offering U.S.-based customers an alternative for swap clearing. We are pleased that Citi is the first FCM to successfully connect several fund companies which are now filling this model with business,” added Tim Gits, head of fixed income sales, Americas, Eurex.